The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksPlexus Regulatory News (POS)

Share Price Information for Plexus (POS)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 15.50
Bid: 15.00
Ask: 16.00
Change: 0.00 (0.00%)
Spread: 1.00 (6.667%)
Open: 15.50
High: 15.50
Low: 15.50
Prev. Close: 15.50
POS Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Sale of Wellhead Equipment to Russian Partner

14 Feb 2018 07:00

RNS Number : 7994E
Plexus Holdings Plc
14 February 2018
 

Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil Equipment & Services

 

 

 

 

This announcement contains inside information

 

Plexus Holdings PLC ('Plexus' or 'the Company')

£1.4million Sale of Wellhead Equipment to Russian Partner

 

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, is pleased to announce the sale of two POS-GRIP 18-3/4" rental wellhead sets and associated mudline equipment and tooling to LLC Gusar (OOO Gusar) Ltd ('Gusar'), the Company's partner and licensee in Russia, for circa £1.4m ('the Sale'). The wellheads will serve as the basis for Gusar's POS-GRIP rental exploration wellhead inventory, and are planned to be used for gas exploration drilling within the Russian Federation under the exclusive licence agreement ('the Licence Agreement') between Plexus and Gusar and CJSC Konar (ZAO Konar) ('Konar'), two independent Russian oil and gas equipment manufacturers.

 

The Sale represents a major milestone towards delivering on one of Plexus' objectives to establish its best in class POS-GRIP equipment in Russia and the CIS, one of the top three hydrocarbon producers in the world with significant gas reserves.

 

In January 2016, the Company entered into the Licence Agreement, which conferred to Gusar and Konar the right to manufacture and rent Plexus' proprietary jack-up exploration wellhead and associated equipment within the Russian Federation and the other CIS states. Under the terms of the Licence Agreement, Plexus agreed to sell to Gusar up to three suitably configured POS-GRIP Wellhead Systems as the basis of its own rental wellhead inventory and to help facilitate Gusar's roll-out of rental POS-GRIP Wellhead Systems in the Russian and CIS markets. It is anticipated that the Sale will enable Gusar to secure its first rental order from a major local operator in the near future and may lead to the purchase of a third wellhead in due course.

 

As the anticipated pick-up in activity in Russia and elsewhere in the region gains traction, Gusar can as and when necessary add to this initial rental inventory by manufacturing POS-GRIP Wellhead Systems under licence. Under the terms of the Licence Agreement Plexus will receive royalties based on the invoice value of any Plexus products rented or sold by Gusar or Konar. The two wellhead sets of equipment sold to Gusar as part of the Sale are expected to be deployed on jack-up gas exploration wells, which is permissible under current EU trade sanctions.

 

The Sale follows an initial purchase order from Gusar for the Company's Tersus™- TRT Mudline Suspension System ('MLS') equipment in April 2017. Gusar, assisted by Plexus, has been using the MLS to demonstrate to Russian operators the environmental benefits and operational advantages of Plexus' system, which is proven to deliver excellent reliability, superior well integrity, and significant time savings. In combination with POS-GRIP® Adjustable Wellhead Systems, which have been used on over 350 jack-up exploration wells worldwide by major operators including BP, Royal Dutch Shell, Statoil and Total, the Directors believe that Plexus' system is the best technical solution.

 

Following the recent completion of the disposal of its wellhead exploration equipment and services business for Jack-Up applications (the "Jack-up Business") to FMC Technologies Limited ("FMCT") for up to £42.5million (the "Disposal"), Plexus retained the right to pursue jack-up exploration related business in Russia and the CIS via the Licence Agreement. FMCT is a subsidiary of TechnipFMC (Paris:FTI)(NYSE:FTI), one of the leading oil and gas service and equipment companies.

 

Plexus' CEO Ben Van Bilderbeek said, "The sale of these two wellhead sets is a key step towards Gusar securing a landmark first rental order from a local Russian gas operator for our POS-GRIP wellhead equipment. Post the sale of our Jack-up Business to FMCT, alongside the development and roll-out of POS-GRIP enabled products in other areas of the energy industry such as subsea, production and renewables, Russia and the wider region is a central area of focus, not only because it is a top three global hydrocarbon producer, but also due to the importance of gas in its energy mix. As evidenced by its successful deployment on numerous wells in the North Sea, our technology and HG® metal sealing are ideally suited to the high pressures and temperatures - and hence environmental risks - associated with gas. As a result, Russia represents a major opportunity for the Company and I am very pleased to see our belief in this market coming to fruition.

 

Gusar's General Director, Alexander Beryozkin said, "We are delighted to kick-start the build-up of our POS-GRIP exploration rental fleet with the purchase of these initial two wellhead sets. This follows a period of active engagement with Russian operators, which has resulted in highly encouraging feedback. The proven safety and operational advantages of POS-GRIP technology, together with the pickup in activity across the sector and the ongoing import replacement programme where locally manufactured and safest drilling technology is sought, give us grounds for optimism that we will begin to make inroads in the important Russian gas drilling market."

**ENDS**

 

For further information please visit www.posgrip.com or contact:

Ben van Bilderbeek

Plexus Holdings PLC

Tel: 020 7795 6890

Graham Stevens

Plexus Holdings PLC

Tel: 020 7795 6890

Derrick Lee

Cenkos Securities PLC

Tel: 0131 220 9100

Frank Buhagiar

St Brides Partners Ltd

Tel: 020 7236 1177

Isabel de Salis

St Brides Partners Ltd

Tel: 020 7236 1177

 

NOTES:

AIM-traded oil and gas engineering services company Plexus (AIM: POS) is an IP-led company that has developed a range of products and applications based on its patent-protected POS-GRIP friction-grip technology. Having proved the superior qualities of POS-GRIP within the jack-up wellhead exploration market through the sale of this business to FMC Technologies Limited ("FMCT"), a subsidiary of TechnipFMC (Paris:FTI, NYSE:FTI), in early 2018, the Company is now focused on establishing its technology and equipment in other markets including surface production, subsea and de-commissioning.

 

Its suite of new products and applications includes: the Python™ Subsea Wellhead (a new standard for subsea wellheads - supported by BG, Royal Dutch Shell, Wintershall, Maersk, Total, Tullow Oil, eni, Senergy, and Oil States Industries Inc); the POS-SET™ Connector for the growing de-commissioning and abandonment market; HP/HT dual marine barrier risers which provide an efficient, safe and cost effective solution for use on jack-up rigs; an innovative HP/HT Tie-Back connector product; and a new Well Tree product. Importantly, the Company has a Collaboration Agreement with TFMC, which provides a platform to further develop and commercialise these and other applications based on its POS-GRIP technology.

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
DISLLFVDFLIVLIT
Date   Source Headline
18th Dec 20097:00 amRNSGrant of Options
16th Dec 20097:00 amRNSContract Win - Wintershall Noordzee B.V.
15th Dec 20097:00 amRNSGBP3million Contract Win - Maersk Oil
1st Dec 200911:20 amRNSAGM Resolutions
1st Dec 200910:00 amRNSAGM Statement
4th Nov 20097:00 amRNSExtended Contract with Transocean Drilling U.K.
29th Oct 20097:00 amRNSFinal Dividend
20th Oct 20097:00 amRNSPreliminary Results
19th Oct 20097:00 amRNSContract Win - Dubai
12th Oct 20099:59 amRNSNotice of Results
10th Aug 20097:00 amRNSGBP 500,000 New Building Commissioned - Aberdeen
20th Jul 20097:00 amRNSGDF SUEZ Egypt Contract Win
14th Jul 20097:00 amRNSContract Win - Talisman Energy
30th Jun 200910:04 amRNSDirector/PDMR Shareholding
17th Jun 20097:00 amRNSMaiden Interim Dividend
8th Jun 20097:00 amRNSGBP1.2 million Contract Win with RSPOC
19th May 20097:00 amRNSGBP1.6m Contract Extension with BP Egypt
25th Mar 20094:19 pmRNSInterim Results Posted to Shareholders
25th Mar 20097:00 amRNSInterim Results
26th Jan 20097:00 amRNSIncreased Banking Facilities
21st Jan 20095:55 pmRNSDirector/PDMR Shareholding
5th Jan 20097:00 amRNSNew Four Year Brunei Shell Contract
2nd Dec 200811:21 amRNSResult of AGM
2nd Dec 200811:00 amRNSAGM Statement
31st Oct 20083:42 pmRNSAnnual Report and Accounts
15th Oct 20087:00 amRNSPreliminary Results
22nd Sep 20087:00 amRNSConocoPhillips ?1.7 million Contract Win
18th Aug 20087:00 amRNSContract Win with SPD Ltd
11th Aug 20087:00 amRNSGBP750,000 Contract Win with
23rd Jul 20087:00 amRNSAcquisition of Plexus Deepwat
8th Jul 20087:00 amRNSContract Win - Lundin Petrole
20th Jun 200812:08 pmRNSDirector/PDMR Shareholding
17th Jun 20087:00 amRNSContract with Dubai Petroleum
14th Apr 20087:00 amRNSNew Contract
31st Mar 20083:39 pmRNSInterim Results
31st Mar 20087:01 amRNSInterim Results
28th Mar 20083:15 pmRNSNew Contract Win
31st Jan 20087:00 amRNSDirector/PDMR Shareholding
21st Jan 20089:42 amRNSHolding(s) in Company
7th Dec 20079:24 amRNSAnnual Report and Accounts
5th Dec 20077:00 amRNSGBP 1.5 million Contract Win
14th Nov 20073:21 pmRNSAGM Resolutions
14th Nov 200711:00 amRNSAGM Statement
17th Oct 20077:00 amRNSContract Win - GDF Britain
28th Sep 20077:03 amRNSPreliminary Results
17th Sep 20077:01 amRNSNew Contract with Norsk Hydro
3rd Sep 20077:01 amRNSWins Subsea Contract
17th Aug 20074:24 pmRNSAIM Rule 26
25th Jun 20075:06 pmRNSDirector/PDMR Shareholding
21st Jun 20077:00 amRNSGrant of Options

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.